Determinants of Economic Growth: Empirical Evidence from China (original) (raw)

This study analyzes the determinants of Economic growth in China over the period 1990-2017. Besides FDI, four other variables including population, trade, domestic investment, and unemployment have been included in the study, to regress ahead GDP of this country. The methodology to test the impact of these variables on china's economy has been limited to the least-squares method. The co-integration of the variables has been established throughout the application of the Augmented Dickey-Fuller Test and is found to hold in the long run. Our findings indicate that china's economic performance is negatively affected by foreign direct investment whereas its domestic investment has advantage its economy. Moreover, the nations four other variables including population, trade, domestic investment, and unemployment have found to have a negative impact on its GDP. The study recommends a number of policy implications.

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